It is very much in your interest to get as many online reviews as possible – good and bad. Reviews are not only valuable in the way that guests select hotels based on the quality of the review, but they are also useful critical feedback that you can base improvements on. Negative reviews while having an initial negative impact give you the opportunity to take corrective action so that the next time the review will be better.
The most critical and simplest measure of performance for hotels in the occupancy rate. Measured as the percentage of available rooms occupied over a specific period of time.
Occupancy % = Rooms Occupied / Rooms Available
ADR – Average Daily Rate
Measured simply as the average price paid per room on a given day. Works well in isolation as an ongoing performance metric.The ADR is most useful when compared to previous periods or seasons to identify performance.
Average Daily Rate = Total Room Revenue / Total Rooms Occupied
REVPAR – Revenue Per Available Room
REVPAR is a very useful measure of performance and it is also one that needs to viewed in the correct context. Measured by the average daily room revenue generated by available room, it can differ significantly based on industry specific factors
REVPAR = Total Room Revenue / Total Rooms Available
It may be more of a challenge to measure but without satisfied customers you will find it difficult to challenge for business against competitors, especially when online ratings are the currency of choice for potential guests. It is possible to develop a process with which to measure customer satisfaction and you can incrementally improve your offering over time based on the results.
Calculating your Return on Investment (ROI) from your advertising and promotions will save you from wasting money on ineffective advertising and promotion. How much revenue does you local city magazine ad bring hotel? Maybe lots, maybe little – either way you need to know and you need to track and measure it. With online advertising this task should be somewhat easier but make sure you have your systems set up in your hotel so that you can measure the effectiveness of you advertising spend.